In Early 2024, The BI Rate Again Remains At 6 Percent

BI Governor Perry Warjiyo (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) has again decided to keep the benchmark interest rate or BI-Rate still at 6 percent in the Board of Governors' Meeting (RDG) which will take place on January 16-17, 2024.

In addition, BI also withheld deposit facility interest rates and lending facility rates so that they remained at 5.25 percent and 6.75 percent.

"The meeting of the Board of Governors of Bank Indonesia on January 16 and 17, 2024 decided to detain BI-Rate so that it remains at 6 percent," said Bank Indonesia Governor Perry Warjiyo at a press conference, Wednesday, January 17, 2024.

Perry said the decision to hold the benchmark interest rate at 6 percent was a consistency of monetary policy to strengthen the stability of the Rupiah exchange rate as an anticipatory measure of the impact of the uncertainty of the global financial market which was still high.

As well as a preemptive and forward looking step to ensure inflation will remain under control in the target range of 3 plus minus 1 percent in 2023 and 2.5 plus minus 1 percent in 2024.

"Meanwhile, macroprudential policies and payment systems remain pro-growth to support sustainable economic growth," he explained.

Meanwhile, loose macroprudential policies continue to be pursued to encourage bank credit/financing to businesses and households.

Acceleration of digitalization of payment systems, including digitizing financial transactions of the Central and Regional Governments, continues to be encouraged to increase transaction volume and expand digital economic-financial inclusion.

"The policy mix will continue to be directed to maintain stability and support sustainable economic growth," he added.

Previously, at the Board of Governors Meeting for the period December 2023, BI decided to hold the benchmark interest rate at 6 percent. In addition, BI also withheld deposit facilities and lending facility interest rates at the level of 5.25 percent and 6.75 percent.